Introduction:
While starting a bussines one of the crucial tasks is organizing the people to perform their work. Bussines can also start up as a single person completing the tasks. However when there are several people working together toward a common objective, there must be a plan organizing their work, arranging their responsibilities and building up the hierarchial structure.The plan for the systematic arrangement of work is the organization structure.
Organizatinal structures clearly define lines of authority for all levels of management. Two traditional structures are line and line-and-staff. We will take a closer attention to the previous one.
Definition: Line organization is most common and the most simple type of hierarchich (burocratic) structure. It refers to bussines structure with self-contained departments. Authority travels downwards from top and accountability upwards from bottom along the chain of command, and each department manager has control over his or her department's affairs and employees.
Line Structure has a very simple and clear line of command. The approvals and orders in this kind of structure come from top to bottom in a line (here is where the name line structure derives from). This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision making, and also very informal in nature. They have fewer departments, which makes the entire organization a very decentralized one.
The relationship between employees and the preident is rather informal and on first-name basis. The President is often available throughout the day to answer questions and/or to respond to situations as they arise (flexibility of the structure). It is common to see the president or CEO working alongside the subordinates. Because the president is often responsible for wearing many "hats" and being responsible for many activities, she or he cannot be an expert in all areas.
Like any other organizational structure Line organization has its own advantages and disadvantages;
Advantages:
- Great flexibility to changing bussines enviroment
- High problem solution capacity
- Accurate gradation of the line levels
- Clearly defined authority
- An exact delimitation of competence
- Clear overview of the arrangement of the organization
Disadvantages:
- No specific departament dealing with strategic developemnt
- Lengthy official channels, which obstruct the information flow between the places
- Overload of higher management
- A gap between those who take the decision and those who implement them
- Problem of the demarcation of competencies
- Danger of authority conflicts
- Lack of flexibility to ever changin bussines enviroment
Line Organization
Arsen A. Asvarov
Introduction:
While starting a bussines one of the crucial tasks is organizing the people to perform their work. Bussines can also start up as a single person completing the tasks. However when there are several people working together toward a common objective, there must be a plan organizing their work, arranging their responsibilities and building up the hierarchial structure.The plan for the systematic arrangement of work is the organization structure.
Organizatinal structures clearly define lines of authority for all levels of management. Two traditional structures are line and line-and-staff. We will take a closer attention to the previous one.
Definition:
Line organization is most common and the most simple type of hierarchich (burocratic) structure. It refers to bussines structure with self-contained departments. Authority travels downwards from top and accountability upwards from bottom along the chain of command, and each department manager has control over his or her department's affairs and employees.
Line Structure has a very simple and clear line of command. The approvals and orders in this kind of structure come from top to bottom in a line (here is where the name line structure derives from). This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision making, and also very informal in nature. They have fewer departments, which makes the entire organization a very decentralized one.
The relationship between employees and the preident is rather informal and on first-name basis. The President is often available throughout the day to answer questions and/or to respond to situations as they arise (flexibility of the structure). It is common to see the president or CEO working alongside the subordinates. Because the president is often responsible for wearing many "hats" and being responsible for many activities, she or he cannot be an expert in all areas.
Like any other organizational structure Line organization has its own advantages and disadvantages;
Advantages:
- Great flexibility to changing bussines enviroment
- High problem solution capacity
- Accurate gradation of the line levels
- Clearly defined authority
- An exact delimitation of competence
- Clear overview of the arrangement of the organization
Disadvantages:
- No specific departament dealing with strategic developemnt
- Lengthy official channels, which obstruct the information flow between the places
- Overload of higher management
- A gap between those who take the decision and those who implement them
- Problem of the demarcation of competencies
- Danger of authority conflicts
- Lack of flexibility to ever changin bussines enviroment
The line organization